Economic Development

The president has put forward a "plan" for infrastructure spending that identifies no new source of funding, that makes unbelievable assumptions about how much state and private spending can be leveraged by a limited amount of new federal spending and that proposes an end-around of environmental regulations in the guise of streamlining those regulations.

In response to deep and long ignored needs in Pennsylvania and throughout the country for upgrading our roads, bridges, transit systems, airports and water and sewer works - needs that should be met by new investments that could create tens of thousands good jobs - the president has offered a glittering fantasy with little of the substance necessary to meet those needs.

This past Tuesday, Keystone Research Center co-sponsored “Manufacturing a Better Paying Pennsylvania” with the D.C.-based Century Foundation, the Steel Valley Authority, and others. The event laid out the case for the U.S. and Pennsylvania to implement comprehensive strategies for growing high-wage manufacturing. This Pittsburgh Post-Gazette op ed lays out the basic argument.

The Pennsylvania Budget and Policy Center said another bittersweet good-bye this week, to long-time research director Mike Wood. We will miss Mike’s unflappable demeanor, formidable work output and sly wit. But we are proud to make another excellent contribution to the new administration. Mike joins former PBPC director Sharon Wood in the Governor’s Budget Office. His new title is Executive Budget Manager – Division of Education (we’re saluting as we write that). Congratulations and best of luck, Mike!

Flying in the face of the often heard rhetoric that tax cuts are the cure for all ills, a new study finds that cuts to business taxes are at best ineffective, and at worst harmful to state economic growth and development. A better strategy for growth is to increase investment in education and infrastructure.

While there's been a lot of focus recently on K-12 school funding cuts in Pennsylvania, Pennsylvania higher education has experienced even larger state funding cuts in percentage terms. Pennsylvania's starting point for investing in higher education, moreover, was already near the bottom.

The list of poor rankings that reflect Pennsylvania's underinvestment in higher education is somewhat mind blowing.

For example, Pennsylvania is 48th for investment in higher education per capita.

The Philadelphia 76ers have been scouting locations for a new training facility, and New Jersey has lobbied considerably to have the team relocate across the river to the Garden State. To sweeten the deal, the New Jersey Economic Development Authority (EDA) will cover the total cost of the new facility. The state will reimburse the team through an $8.2 million annual tax credit.

My colleague Diana Polson brought my attention to Harold Meyerson's new story in The American Prospecthighlighting Pittsburgh as a city with exciting young progressive political leadership and labor-community alliances (e.g., Pittsburgh United). Pittsburgh deserves the credit as do councilwoman Natalia Rudiak, Mayor Peduto, and SEIU 32BJ, which received shout outs in the story.

This week at Third and State, we blogged about a new study showing the American Dream of upward mobility is more alive in Pennsylvania than in many parts of the country. We also wrote about 2012-13 revenue collections and a well-oiled effort to distract middle-class families from the real cause of their economic struggle. Plus, a guest post on how Pittsburgh avoided Detroit's fate.

IN CASE YOU MISSED IT:

On wages and mobility, Stephen Herzenberg blogged about a new study by Harvard and Berkeley economists showing that Pennsylvania enjoys substantially more upward mobility than many other parts of the United States.

On state budget and taxes, Michael Wood explained some of the key takeaways from General Fund revenue collections in the 2012-13 fiscal year.

On nutrition assistance, Stephen Herzenberg responded to the latest salvo in an organized right-wing assault on nutrition assistance and other safety net spending. Steve wrote that the real kitchen table issue facing most Americans is rising income inequality.

And on the Marcellus Shale and the economy, guest blogger Tim Stuhldreher shared his thoughts on why Pittsburgh has fared much better than Detroit after taking huge economic hits in the 1980s. Hint: it is not all about shale drilling.

IN OTHER NEWS

The Keystone Research Center published a briefing paper and press release about the landmark new study showing that Pennsylvania enjoys substantially more upward mobility than many other parts of the United States.

The Pennsylvania Budget and Policy Center published an updated Revenue Tracker with a full analysis of General Fund collections in the 2012-13 fiscal year.

Get all the facts on the 2013-14 state budget with the following analyses and resources from PBPC:

We're not always the "good news bears," but today we're thrilled to give greater visibility to a landmark new study that shows the American Dream of upward mobility is more alive in Pennsylvania than in most parts of the country.